Vacant land tax on hotel: HC gives 4 weeks to Law Ministry

The Delhi High Court today granted four weeks time to the Law Ministry to take a decision on the representation made before it by Hotel Leelaventure, which runs a five-star hotel, on the vacant tax demand being raised on it for a period it was under construction in south Delhi.
A bench headed by Justices B D Ahmed and Siddharth Mridul directed the Law Ministry to take a decision within four weeks.
"No decision has been taken by the Law Ministry yet. Decision be taken in four weeks," the bench said while also directing Standing Counsel for Delhi government, Sumeet Pushkarna to take instructions as to what has happened on the representation and aprise the court about it.

The court also directed Leelaventure to file a copy of the representation before it within ten days.
The representation made by Hotel Leelaventure seeks amendment to the NDMC byelaws according to which the Hotel is being asked to pay vacant land tax for even the time period, nearly 18 months, during which its building was being constructed in Chanakyapuri.
The counsel for the Hotel group said the vacant land being charged is more than the property tax being charged for running the hotel, which as such could not have been the intention of the legislature.
According to NDMC, the hotel has to pay Rs 30 crore as vacant land tax for the time it was under construction.

The Hotel had sought a fresh assesment of property in 2010.